Technology firm that calls itself 'eBay of business services' being probed by City watchdog after admitting errors in way it records revenues

A technology firm that calls itself the ‘eBay of business services’ is being probed by the City watchdog after admitting errors in the way it records revenues.

Blur Group allows firms to search for services online, from recruiting project managers and web designers to legal services, taking 20 per cent of deals done on its website.

But the company, which has already issued three profit warnings in the space of a year, said that sales would be ‘substantially lower than previously expected’ after a number of mistakes were found by its auditors.

Probe: The Financial Reporting Council is investigating the blunder, which could delay publication of Blur’s annual results for 2014

Shares fell by almost a third to close 23.5p lower at 57.5p. The company’s value has fallen by almost 90 per cent in the past 12 months.

It said: ‘A number of older projects started between late 2013 and early 2014, which have experienced delays, have shown a lower likelihood of completion.

‘As a result, the recognised revenue for the full year will be substantially lower than expected’.

The firm prematurely booked revenues from its website when two parties had made contact, even though it would not be paid until a deal was completed.

The Financial Reporting Council is investigating the blunder, which could delay publication of Blur’s annual results for 2014.

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Technology firm that calls itself 'eBay of business services' being probed by City watchdog after admitting errors in way it records revenues